Oct. 6 (Bloomberg) — China’s financial system is safe amid a deepening global crisis and the world’s fourth-biggest economy may be able to maintain fast growth, Premier Wen Jiabao said.
Wen said he had full confidence in China’s economic development and stability, according to the official Xinhua News Agency. The financial system is sound and safe, he said.
Governments in Europe are racing to shore up faltering financial institutions and the U.S. is enacting a $700 billion rescue package as the credit crisis deepens, increasing the risk of a world recession. China can best aid the global economy by maintaining lasting, smooth and fast economic development, the premier said.
China has escaped the worst of about $590 billion of global losses from securities tied to U.S. home loans, Bloomberg data shows. The Asian share of the total is $24.5 billion.
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I think that for a new currency to work, that it be designated as legal tender for new debt only. The older fiat currencies could still be used for old and new debt repayment. This would provide a basis for the new currency (and
the old currency price of gold) to float upward to whatever new level the market would assign. It would also allow debasement of the old currencies to take place at the discretion and timing of the countries involved.